How to Plan Your Retirement at 65 and Feel Confident

Turning 65 doesn’t have to feel like stepping into the unknown. With a few clear actions you can turn your pension, savings and any side income into a steady cash flow that covers the bills and still leaves room for fun.

Check Your Savings and Income Needs

First, write down the amount you need each month. Look at your mortgage, utilities, food, transport and the extras you enjoy – a holiday, a hobby, a café visit. Most experts say aim for about 70‑80% of your pre‑retirement earnings, but the exact number depends on your lifestyle.

Next, add up every source of money you’ll have after you stop working. That includes the State Pension, any workplace or private pension, rental income, dividends and any part‑time gig you might keep. Use a simple spreadsheet: list each source, the expected monthly amount, and total it up.

If the total falls short of your monthly target, you’ve got two levers: cut costs or boost income. Look for easy savings – switch to a cheaper energy tariff, renegotiate insurance, or pause a subscription you rarely use. On the income side, think about deferring a portion of your State Pension to get a higher weekly amount, or converting some of your savings into an annuity that guarantees a set payment.

Boost Your Pension and Reduce Risks

Even if you think your pension is set, a quick review can unlock extra cash. Check whether you’ve been paying the full employee contribution – if not, ask your former employer if you can make a catch‑up payment. Some schemes let you transfer unused annual allowance from earlier years, which can increase your pot.

Consider the tax side too. Taking a lump sum up to 25% of your pension tax‑free can give you a cash buffer for big expenses, but be careful not to eat into your regular income too much. If you have a defined contribution plan, think about moving it into a low‑cost index fund. Fees can eat away at returns, especially over a 20‑year horizon.

Finally, protect yourself from market dips. A simple rule is to keep about 30‑40% of your retirement assets in cash or short‑term bonds. That way, when the market falls you won’t have to sell at a loss to cover everyday costs.

Putting it all together, the best retirement plan is the one you actually follow. Write down your numbers, adjust where needed, and review the plan at least once a year. Small tweaks – a cheaper phone plan, a higher‑yield savings account – add up over time and keep your retirement comfortable.